Market Overview

Facebook 'Adds A Friend In Payments,' According To SunTrust's Bob Peck

Facebook 'Adds A Friend In Payments,' According To SunTrust's Bob Peck
Related FB
Dan Deming's Facebook Trade
From Amazon To Chipotle, Here's A Look Into College Students' Favorite Stocks
Why Facebook Can Still Continue Growing (GuruFocus)

In a report published Wednesday, SunTrust Robinson Humphrey analyst Bob Peck detailed five benefits Facebook Inc (NASDAQ: FB) could realize from a Payments feature in its Messenger product.

Peck noted that Facebook has the opportunity to engage its 500 million plus user base on Messenger and one billion plus user base on Facebook. The analyst continued that with Facebook payment acting as a "PayPal-like enabler," a $1 billion revenue opportunity exists for Facebook.

Peck detailed five benefits of the product for Facebook:

  • Facebook could implement an in-ad "buy button" now that it would have a user's payment information.
  • Facebook could "close the loop" for advertisers and merchants, by seeing purchases.
  • Facebook could leverage massive adoption to offer a monetizeable product for offline merchants.
  • Facebook could drive deeper engagement on its platform.
  • Facbeook could replicate the platform for its WhatsApp user base.

Related Link: Morgan Stanley: Facebook Payments May Help Visa & Mastercard Investors More

Shares of Facebook are Buy rated with a $90 price target.

Latest Ratings for FB

Oct 2016Credit SuisseMaintainsOutperform
Sep 2016JP MorganMaintainsOverweight
Sep 2016Loop CapitalInitiates Coverage onBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Bob Peck Facebook Messenger Facebook Payments Robert Peck SunTrust Robinson Humphrey WhatsAppAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (FB)

View Comments and Join the Discussion!